Nestled in the woods amid rustic cabins and the sounds of silence, the Savannah City Council could not escape fiscal reality Wednesday at the New Ebenezer Retreat and Conference Center in Effingham County.

The mayor and aldermen were presented with a range of financial challenges during the first day of their three-day budget retreat. Staff also did their best to reassure the council they had plans in place to meet those challenges and garner support for new initiatives they intend to implement.

One such initiative outlined was City Manager Stephanie Cutter’s plan to create a new department focused on providing improved oversight of the tourism industry, as the number of tour-related companies and activities increases.

“We have to have a team with a watchful eye, just for that,” Cutter said.

There is $520,595 budgeted for the nine-person Tourism Management and Ambassadorship department. The department would be paid for by shifting under-used resources and would not result in additional spending, Cutter said.

Cutter’s comments were made after an earlier presentation by acting assistant city manager Dick Evans regarding spending and revenue projections.

In addition to a projected loss of about $6 million in sales tax revenue, one topic of concern was an anticipated revenue shortfall of about $1.3 million in police reimbursement funds this year due to a dispute with Chatham County.

Alderman Mary Ellen Sprague asked whether the city could take legal action against the county for non-payment, but Cutter said such action is something they are trying to avoid.

Negotiations with the county are expected to begin early next year to resolve the matter.

The budgeted amount in reimbursements for next year has been reduced by about $960,000 in anticipation of those negotiations resulting in decreased payments from the county.

A reduction of about $1.2 million in capital improvement spending compared to what had been budgeted this year also generated some alarm from council members.

Sprague said she realized capital improvement projects are easy targets for expense cuts, but that it is important to maintain city facilities.

“You end up paying for it in the long run,” she said.

Alderman Tony Thomas shared her concerns, stating it was important that the city follow through on projects they have promised residents.

Evans said many of the projects had been completed under budget or will be completed in future years.

Staff is expected to provide detailed information about what budgeted projects were completed, in response to the concerns.

The budget workshop is scheduled to continue through Friday, with adoption of the 2014 spending plan expected Dec. 12.

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Then some residents who are entreprenuers and live in communities like Cuyler Brownville and West Savannah would have been in on the ground floor getting their fair share of the action. Any relatives and friends generally work in entry-level positions. NFPBA has become a rather handy scapegoat when things either go awry or against what the prevailing consensus is on these forums.

that must be the way Stephanie Cutter envisions things. I wish everything else was going so well. It must be nice to have $500,000.00 just to throw away. What is the Tourism Management and Ambassadorship department supposed todo, especially "NINE" of them? At least start with only one and see if you need them. I would bet the Savannah Convention and Visitors Bureau can do anything that the Savannah Tourism Management and Ambassadorship Department can do. Gosh it is so aggravating the way the City of Savannah can just waste money. Who in the heck came up with NINE people?? If I remember correctly the Atlanta Convention and Visitors Bureau only has 6 people. Stephanie get smart, if this isn't jobs for your friends, just give the SCVB $200,000.00 and save yourself $300,000.00 and a lot of headaches.